I think that the best advantages of managing projects in organizations promoting participations from all members is a) these users will most liklely be more accoutable of their workb) when facing new issues, scope changes or different techniques/technologies, involving as many people with different knowledge & knowledge is the best way to find a solution that will have the least impact on time, scope, budget.
In other words, I strongly believe this methods provides the better return-on-investment, but I totally agree with the previous comment on this page; this can be achieved only with strong leaders, who have experimented this method of managing projects. Otherwise, you can lead to problems in communications, conflicts resolutions, unmanaged egos, of egos, just to mention these.
Here is a link to a very good publications on user involvement, describing advantages, disavantages, what is user involvement, etc.:"Good Practice Guide - User Involvement" :
http://www.biglotteryfund.org.uk/er_res_good_practice_guide_user_involvement.pdf
And I also found this other website you might find interesing:
"The Importance of Peer to Peer Communication" : http://pmtips.net/importance-peer-peer-communication/
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